Guarantee of All Debts - Limited Recourse

This form provides for a guarantor for the repayment of a debt. This guarantor is, in effect, a co-signer for all of the obligations of a borrower to a specific lender. The guarantor agrees that if any of the payments are late or not paid, they will make the payments. The guarantor also agrees that the guarantee may be enforced without having to first sue the borrower for defaulting on the debt. A mere default by the borrower without any court action will suffice to require the guarantor to make good on the obligation. This particular form differs from other guarantees in that the guarantor in that if there is a default by the borrower, the lender only has recourse against a specific asset of the guarantor and
may not go after any of guarantor's other property.